Gevo and Land O'Lakes Purina Feed join in DGS agreement

Gevo, Inc., a renewable chemicals and advanced biofuels company, has signed an off-take and marketing agreement with Land O'Lakes Purina Feed for the sale of distillers grains from Gevo's isobutanol production facility (isobutanol distillers grains or, iDGs) at Luverne, Minnesota.

Land O'Lakes Purina Feed will be the exclusive marketer of Gevo's isobutanol dried and modified wet distillers grains for the animal feed market.

Further, the companies plan to work together to explore opportunities to upgrade the material for special value-added applications in feed markets.

"Corn is interesting as a feedstock because it has both protein and carbohydrates. Producing protein and animal feed from agriculture is extremely important, and selling the protein for feed, and using the excess carbohydrate for chemicals and fuels makes great sense given the fact that almost all of the nutritional value of corn can be captured in the animal feed product," said Patrick Gruber, CEO of Gevo.

"We are looking forward to working with Land O'Lakes Purina Feed, the country's leading brand and largest producer of animal feed, to establish a market for and explore ways to add nutritional value to our iDGs."

"When a partnership is developed between the technological expertise of Gevo and the research capabilities and customer networks of Land O'Lakes Purina Feed, it presents another opportunity to add value to grain farmers and livestock producers alike," said John Hany, director, direct ship merchandising and DDG marketing for Land O'Lakes Purina Feed. "We are very excited about our future together and the potential gains that may be had by all involved."

According to the USDA's Economic Research Service, one metric ton of dried distillers grain can replace on average 1.22 metric tons of animal feed consisting of corn and soybean meal in the USA.

Gevo's fermentation process converts only the carbohydrates (corn starch) into isobutanol while capturing 100% of the corn protein, the most valuable part, for animal nutrition. The feed value of the iDGs reduces Gevo's net carbohydrate costs.

Land O'Lakes, Inc. is a US-based, farmer-owned food and agricultural cooperative with 2010 sales of $11 billion. It is US’ second-largest cooperative and number 218 on the Fortune 500.

The company does business in all 50 states and more than 60 countries. It is a leading marketer of a full line of dairy-based consumer, foodservice and food ingredient products across the United States; serves its international customers with a variety of food and animal feed ingredients; and provides farmers and ranchers with an extensive line of agricultural supplies (feed, seed, and crop protection products) and services.